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Sunday, 30 November 2014

TO BUILD PUBLIC AWARENESS ON THE IMPORTANCE OF INSURANCE

A special strategy was
needed to build awareness on the importance of insurance to the Indonesian
people due to low penetration of insurance in Indonesia. Chairman of the Indonesia
Insurance Council [DAI] Hendrisman Rahim disclosed on Monday [13/10] in his
press conference in connection with the 98th Insurance Day 2014 on
Saturday [18/10].

People’s awareness of insurance products must be enhanced
time after time. This was because survey outcome by National Financial Survey
run by OJK in 2013 showed that only 17.84% or only 18 out of 100 people were
well literate about insurance and only around 12 out of 100 Indonesian citizens
[11.8%] used insurance services.

Hendrisman stated that low penetration of insurance in
Indonesia indicated that there were still many Indonesians who had not
understood insurance for life and how to manage their money well. “This is
regretful considering Indonesia’s huge population,” he said.

Indonesia’s 240 million population was a potential market
to the insurance industry especially with the sizable growth of middle class
population at 8% per year. Today Indonesia’s middle class population was posted
at 50 million people and would reach its peak in the next 25 years. The high
market potential was visible in the numerous foreign investors of foreign
insurance companies entering Indonesia lately.

Meanwhile contribution of the insurance sector to GDP was
posted to increase. This was indicated in increased GDP ratio from 1.82% in
2008 to become 2.16% in 2012. With proclamation of Insurance Day, people’s
awareness could be increased each year. (SS)

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